Top Health-Care Stocks for 2013

Health care was one of the healthiest sectors in the S&P 500 last year, handily beating the broader stock market with 15% gains. And Sam Isaly, the legendary founder of the health-care investment firm OrbiMed Advisors, argues that it remains an attractive industry with fantastic growth prospects over the long haul.

Free to invest in any area of health care, anywhere around the world, Isaly and his crew have bet big on drug makers. Isaly says pharmaceutical and biotechnology companies account for roughly 70% of the...